SHOULDER INNOVATIONS, INC.

Country: United StatesPrice: $20.69Market Cap: $432.9M

Investment snapshot

6%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

2 / 13

NEUTRAL / FAIL

Median fair value

—

No comparable estimates

Models with upside

0 / 17

Positive margin of safety

Strongest signal

9 of 12 pass — Buffett, Marks and Asness object

Key risk

No clean pass — all 13 investors flag at least one valuation criterion

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

Metric	Graham Defensive Value	Buffett Quality Compounder	Lynch GARP	Greenblatt Magic Formula	Piotroski F-Score	Dreman Contrarian Value	Munger Quality Focus	Pabrai Dhandho Framework	Akre Three-Legged Stool	Marks Risk-Aware Value	Ackman Activist Value	Templeton Global Bargain Hunter	Sleep Scale Economies Shared	Asness Systematic Factors	Neff Low-P/E Total Return	Schloss Asset-Value Discipline	O'Shaughnessy Systematic Factor Composite
Verdict	FAIL	FAIL	FAIL	FAIL · Rank #2256 (Top 72.8%)	PASS	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	NEUTRAL	FAIL	FAIL	NEUTRAL
Score
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Intrinsic Value (annual)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Margin of Safety	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financial Basis	TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Annual history · FY 2025 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-09-30 · TTM ended 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14	TTM ended 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-10 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-03-10 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-03-10 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-07-01–2026-11-01 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-03-10 Score computed: 2026-11-14	TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Price history 2025-07-01–2026-11-01 · Annual history · FY 2025 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14	TTM ended 2026-09-30 · Annual history · FY 2025 · Price history 2025-07-01–2026-11-01 Latest source filing: 2026-11-05 Score computed: 2026-11-14

Where It Passes

Debt & Leverage75% pass✓ 12✗ 3▾
9 of 12 pass — Buffett, Marks and Asness object
LT Debt vs Net Current AssetsLT Debt $14.8M vs NCA $118.8M
✓GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest CoverageD/E: 0.13, IC: -15.4x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity0.13
✓Lynch< 0.33
Cash - Long-term Debt$21.6M
✓LynchPositive preferred
LT Debt / Total Assets Change34.03% -> 8.78%
✓PiotroskiDecreased YoY
Current Assets / Current Liabilities10.68
✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity0.13
✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x
Debt Levels0.13
✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=-15.6x, D/EBITDA=N/A
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity0.13
✓Ackman<= 1.0
Negative debt-to-equity (higher means less debt)-0.1254; #1394/4210 (top 33.1%)
✗AsnessTop 30% of eligible cross-section

Where It Falls Short

Valuation0% pass✓ 4✗ 24▾
No clean pass — all 13 investors flag at least one valuation criterion
Price / Book Value per Share1.3x
✗Dreman< 1.2x✓Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
Price / 3-yr avg EPS
✗Graham<= 15x
Price-to-Book Ratio1.3x
✓Graham<= 1.5x
P/E x P/B
✗Graham<= 22.5
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value-8.5%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=-8.5%, ROC=-36.5%
✗GreenblattBoth EY > 10% and ROC > 25%
Price / EPS
✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price / (CFO / Shares)N/A (negative CFPS)
✗Dreman< 8x
Valuation ReasonablenessOE Yield=-24.8%
✗MungerP/E < 25 or Owner Earnings Yield > 5%
P/E or FCF YieldFCF Yield=-8.3%
✗PabraiP/E < 15 or FCF Yield > 10%
P/B or P/E vs. Historical AverageP/B=1.3x
✓MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value
✗Marks>= 20% below intrinsic value
Price / FCF per ShareN/A (negative FCF)
✗Ackman<= 25
Price vs. Trailing Low177% of trailing low ($11.72)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Net income / market capitalization-7.70%; #4067/6340 (top 64.1%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Positive book equity / market capitalization+0.2736; #3816/6449 (top 59.2%)
✗AsnessTop 30% of eligible cross-section
Price / Diluted EPS
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E
✗Neff> 0.7 (Neff's published traditional edge)
Price / Tangible Book Value per Share1.28x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change
✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+0.1490; #4063/5247 (top 77.4%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization-9.86%; #3227/4519 (top 71.4%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date+61.77%; #546/6202 (top 8.8%)
✓OshaughnessyTop 10% of eligible cross-section
Cash Flow0% pass✓ 1✗ 11▾
No clean pass — all 10 investors flag at least one cash flow criterion
Free Cash Flow Proxy$-40.4M
✗BuffettPositive and growing
FCF Positive and Growing$-36.0M
✗LynchPositive and growing
Operating Cash Flow$-28.6M
✗PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=-16.84%, ROA=-23.75%
✓PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)N/A (negative CFPS)
✗Dreman< 8x
P/E or FCF YieldFCF Yield=-8.3%
✗PabraiP/E < 15 or FCF Yield > 10%
FCF Positive0/2 years FCF positive
✗MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap-23.8%
✗Ackman>= 4%
Price / FCF per ShareN/A (negative FCF)
✗Ackman<= 25
Positive Operating Cash Flow frequency0/2 years positive
✗SleepPositive OCF in >= 70% of available years
Operating Cash Flow - Capital Expenditures$-42.7M
✗Neff> $0 (app proxy for a strong fundamental case)
(Operating cash flow - capex) / market capitalization-9.86%; #3227/4519 (top 71.4%)
✗OshaughnessyTop 10% of eligible cross-section
Growth0% pass✓ 1✗ 12▾
No clean pass — all 8 investors flag at least one growth criterion
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthInv: 54.7% vs Rev: 49.6%
✗LynchInventory growth < Revenue growth
EPS Growth Direction
✗DremanPositive over recent years
EPS CAGR
✗Dreman> 5% annualized
Positive Net Income Frequency0/2 years positive
✗MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth49.6%
✓Ackman>= 5%
Positive EPS Growth Frequency
✗AckmanPositive EPS growth in >= 3 of last 5 years
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Revenue growth vs. gross and operating margin trend
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR
✗SleepCAGR > 7%
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Profitability6% pass✓ 3✗ 32▾
15 of 16 flag SI's profitability — Graham, Buffett, Lynch +12 more
Positive EPS (10 years)0/3 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Net Income Positive (10+ years)0/3 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)-28.7%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)
✗BuffettStable or rising over 10 years
Free Cash Flow Proxy$-40.4M
✗BuffettPositive and growing
Earnings Variance (10-yr CoV)
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
ROE-28.2%
✗Lynch> 15%
EBIT / Enterprise Value-8.5%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=-8.5%, ROC=-36.5%
✗GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets-23.75%
✗PiotroskiROA > 0
ROA Change YoY-36.26% -> -23.75% (delta: +12.50%)
✓PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=-16.84%, ROA=-23.75%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY77.0% -> 76.5%
✗PiotroskiImproved YoY
Pre-Tax Income / Revenue-51.7%
✗Dreman>= 8%
Net Income / Shareholders' Equity-28.2%
✗Dreman> 12%
Margin of SafetyP/B=1.3x
✓PabraiP/B < 1.5 or P/E < 15
Return on Equity-28.7% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Discount to Intrinsic Value
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency0/2 years positive
✗MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue-54.4%
✗Ackman>= 15%
Net Income / Shareholders Equity-28.2%
✗Ackman>= 15%
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend
✗TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trend
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
Net income / market capitalization-7.70%; #4067/6340 (top 64.1%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Gross profit / total assets+34.48%; #1189/3702 (top 32.1%)
✗AsnessTop 30% of eligible cross-section
Net income / positive book equity-28.16%; #3868/5226 (top 74.0%)
✗AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA
✗AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Positive Diluted-EPS Years
✗Schloss>= 70% positive over 5-10 observed years (app rule)
Verdicts7% pass✓ 1✗ 14▾
Split decision: 13 FAIL · 2 NEUTRAL · 1 PASS
Overall verdict
✗GrahamFAIL (3/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)✗GreenblattRank #2256✓PiotroskiPASS (F-Score 4)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (2/9)✗TempletonFAIL (3/8)✗SleepFAIL (0/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (0/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
Efficiency25% pass✓ 3✗ 8▾
6 of 8 flag SI's efficiency — Buffett, Greenblatt, Piotroski +3 more
Current Ratio10.68
✓Graham>= 2.0
ROIC (3-5 yr avg)-16.1%
✗Buffett> 10%
ROIC - WACC-26.1%
✗BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)-36.5%
✗Greenblatt> 25%
Current Ratio Change YoY4.59 -> 11.07
✓PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.73x -> 0.28x
✗PiotroskiImproved YoY
Current Assets / Current Liabilities10.68
✓Dreman> 1.5
Return on Invested Capital-20.8%
✗Munger> 15%
ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=-13.3%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROICN/A (non-positive net income)
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)0/1 years above 12% (latest -13.3%)
✗SleepROIC > 12% in a majority of years

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Medical Equipment

SIC Sector: Measuring & Medical Instruments

Size: Small Cap($432.9M)

Revenue: $47.3M+49.6% YoY

Net Income: $40.4M-158.4% YoY

Financial Snapshot

Operating Margin-55.6%

Return on Equity-28.7%

Debt / Equity0.11

Current Ratio11.07

EPS (Diluted)$-4.65

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PHGKONINKLIJKE PHILIPS NV

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WSTWEST PHARMACEUTICAL SERVICES INC

$29.0B

SNNSMITH & NEPHEW PLC

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Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

The latest annual period end is unavailable. Showing the latest fiscal cycle’s quarters; quarter and annual columns may overlap. Quarterly shows the full quarter history.

Metric	TTM · 2026-09-30 2025-10-01 – 2026-09-30 Sources · derived quarter values 10-K · 2026-03-10 10-Q · 2026-05-13 10-Q · 2026-08-06 10-Q · 2026-11-05 Derived from cumulative filings: revenue, net income, operating income, gross profit, ebit, pre tax income, interest expense, operating cash flow, capex.	Q3 FY 2026 2026-07-01 – 2026-09-30 Sources · derived quarter values 10-Q · 2026-11-05 Derived from cumulative filings: operating cash flow, capex.	Q2 FY 2026 2026-04-01 – 2026-06-30 Sources · derived quarter values 10-Q · 2026-08-06 Derived from cumulative filings: operating cash flow, capex.	Q1 FY 2026 2026-01-01 – 2026-03-31 Sources 10-Q · 2026-05-13	FY 2025 Sources 10-K · 2026-03-10	FY 2024 Sources 10-K · 2026-03-10	FY 2023 Sources 10-K · 2026-03-10
Market Cap	$432.9Mcurrent	--	--	--	$122.8Mest.	$1.3Mest.	--
Revenue	$64.5M	$16.2M↑38%	$17.2M↑56%	$16.7M	$47.3M↑50%	$31.6M	--
Operating Income	-$35.1M	-$7.6M↑1%	-$10.0M↓71%	-$9.0M	-$26.3M↓79%	-$14.7M	--
Net Income	-$33.4M	-$7.0M↑19%	-$10.2M↑47%	-$8.4M	-$40.4M↓158%	-$15.6M	--
EPS (Diluted)	--	$-0.34↑47%	$-0.49↑100%	$-0.41	$-4.65↑98%	$-242.04	--
Gross Margin	77.8%	78.5%↑3%	78.3%↑3%	77.7%	76.5%↓1%	77.0%	—
Operating Margin	-54.4%	-46.9%↑28%	-58.4%↓10%	-53.7%	-55.6%↓20%	-46.3%	—
ROE	-28.2%	—	—	—	-28.7%↓200%	28.6%	—
Total Debt	$14.8M	$14.8M	$14.8M	$15.0M	$14.9M↑2%	$14.7M	--
Shareholders' Equity	$118.4M	$118.4M↓20%	$124.3M↑259%	$133.0M	$140.8M↑357%	-$54.7M↓38%	-$39.7M
Current Ratio	10.68	10.68↓4%	10.71↑94%	11.81	11.07↑141%	4.59	—
Debt / Equity	0.13	0.13↑25%	0.12↑163%	0.11	0.11↑140%	-0.27	—
Operating Cash Flow	-$34.9M	-$6.4M↑25%	-$7.4M	-$12.4M	-$28.6M↓102%	-$14.1M	--
Free Cash Flow	-$42.7M	-$7.0M↑39%	-$9.5M	-$15.1M	-$36.0M↓98%	-$18.2M	--

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Medical Equipment

SI vs Peers — Financial Grading

Revenue$47.3MBottom 25%

Net Income$40.4MBottom 25%

ROE-28.7%Bottom 25%

D/E0.11Top 25%

Op. Margin-55.6%Bottom 25%

Curr. Ratio11.07Top 25%

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
ALCON INCALC	$35.6B	$74.12	$10.4B	$980.0M	4.4%	0.21	13.1%	2.12	2/9	1/9	3/7	0/3	F-Score 6	4/11
KONINKLIJKE PHILIPS NVPHG	$29.7B	$30.34	$21.0B	$1.1B	8.2%	0.64	8.0%	1.32	1/9	1/9	1/7	0/3	F-Score 5	3/11
WEST PHARMACEUTICAL SERVICES INCWST	$29.0B	$416.42	$3.1B	$493.7M	15.5%	0.06	19.0%	3.02	4/9	6/9	6/7	1/3	F-Score 7	5/11
SMITH & NEPHEW PLCSNN	$13.1B	$31.28	$6.2B	$625.0M	11.8%	0.59	12.9%	2.57	2/9	0/9	1/7	0/3	F-Score 6	4/11
MSA Safety IncMSA	$6.7B	$174.17	$1.9B	$278.9M	20.4%	0.42	19.8%	3.01	5/9	5/9	4/7	1/3	F-Score 5	7/11
STAAR SURGICAL COSTAA	$1.3B	$26.39	$239.4M	$80.4M	-23.4%	—	-38.3%	4.55	2/9	2/9	2/7	0/3	F-Score 3	3/11
ARTIVION, INC.AORT	$931.9M	$19.10	$441.3M	$9.8M	2.2%	0.48	7.6%	3.53	2/9	0/9	0/7	0/3	F-Score 7	1/11
InMode Ltd.INMD	$763.6M	$13.27	$370.5M	$93.8M	13.7%	—	23.0%	9.88	5/9	3/9	0/7	3/3	F-Score 4	4/11